Half Year 2026 Tokmanni Group Oyj Earnings Call Transcript
Key Points
- Group revenue grew by 3.3% to EUR457.7 million, driven by higher footfall and average basket size in both segments.
- Tokmanni segment revenue grew 2.3% to EUR329.6 million, with comparable EBIT increasing by EUR1.5 million to EUR22.3 million.
- Dollar Store segment revenue grew 7.7% to EUR130.2 million, with like-for-like customer visits turning positive in June and basket size growing by 4.2%.
- Private label share increased from 25.1% to 26.3%, and the common assortment across markets expanded significantly from 2,800 to 6,700 SKUs.
- Strong cash flow of EUR45.7 million in Q2, with efficient inventory management reducing total inventory by EUR20 million year-over-year.
- Operating expenses were well controlled, with the Tokmanni segment's comparable operating expenses declining by 1.2 percentage points of revenue.
- New partnership with SPAR will introduce private label products in Finland and Sweden, potentially increasing customer visit frequency.
- The 11 stores opened in the past 12 months have contributed positively to revenue with a neutral EBIT impact.
- Net debt has been reduced to below EUR300 million from a peak of EUR365.3 million in Q1 2025.
- New executive team members with international experience will strengthen strategy and Dollar Store operations.
- Group comparable EBIT was flat at EUR21 million, with a modest decline due to increased operating expenses in the Dollar Store segment.
- Dollar Store segment comparable EBIT declined by EUR2 million, with a slightly negative EBIT margin of -0.3%.
- Comparable gross margin declined slightly to 34.6% due to heavy campaigning and a shift in product mix towards lower-margin groceries.
- Like-for-like revenue growth was only 0.3%, with the Finnish market showing a disappointing like-for-like performance despite warm early summer weather.
- Dollar Store like-for-like customer visits were still negative for the quarter, only turning positive in June.
- The company had to take a EUR12 million inventory write-down in the Dollar Store segment to clear out old stock.
- Net debt to comparable EBITDA remains high at 4.11 including IFRS 16, well above the long-term target of 2.25.
- The Easter shift negatively impacted Q2 revenue growth by an estimated 1-2 percentage points.
- The Dollar Store segment's operating expenses increased by EUR1.9 million due to new store openings and development projects.
- The company is still in the early stages of understanding its Dollar Store customer base, with no loyalty program in place in Sweden or Denmark.
Good morning, everyone, and welcome to Tokomami Group's half-year financial review and this webcast.
My name is Sampoppa Alusaho, and I have started in this position as a group CEO July 6.
Of course, it's my fifth week, which we are closing today together.
During my first weeks, I had the privilege to visit our stores and DCs here in Finland. As well as in Sweden and in Denmark. It gave me a good understanding how do the stores, markets and customers look like. And of course, that will be also one part of my presentation today and it has been noted in the release earlier today as well.
Our today's agenda, like usually, is actually covering Q2 in brief, our key figures and performance. And as well our view about the future.
We are closing the session together with questions and answers. By the way, this photo is from Sotkamo, which I took on Tuesday this week.
This story is actually starting to be renewed and it will have one of the Everhospire stories in
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